Rupee breaks fall,flirts with 58

The rupee rose to a five-week high of 58.76 against the dollar on Thursday, indicating the RBI’s steps to prop up the currency are having an impact. It closed lower at 59.11 against Wednesday’s close of 59.13 on demand for dollars from importers.

“We expect the dollar to trade in the 58-60.5 range over the next few months,” said Upasna Bhardwaj, economist, ING Vysya Bank.

“But the rupee may remain under pressure till clarity emerges on the rollback of monetary stimulus by the US Federal Reserve,” said Arun Singh, senior economist, Dun & Bradstreet.